Pay Property Tax Online: Overview

Property tax is an amount that a property/land owner pays annually to the local or state government. The municipal authorities collect this tax from citizens as revenue to fund the upkeep and improvement of civic amenities, education, transportation, recreation, local infrastructure, etc.
In India, property tax is levied on assets that classify as ‘real property’ and mostly include land and buildings. Property owners can pay property tax online or offline based on its valuation and appraisal as per the locality.

The amount collected as property tax by a municipality, a municipal corporation or a panchayat within a state or city can vary depending on the locality’s type of levy, amenities available, and other similar factors.

Property Tax Computation Formula

The general formula for municipal tax calculation is –

Tax on property = Property’s base value x building type x age factor x its built-up area x floor factor x use category

Although different civic corporations can compute this tax differently, the common calculation is undertaken in a few steps given below –

  1. Determination of a property’s area.
  2. Identification of its occupancy status, i.e., whether it is self-occupied or let out.
  3. Property type identification based on its use, i.e., residential or commercial.
  4. Availability of amenities.
  5. Construction type identification, like single-floor, multi-storeyed, etc.
  6. Identification of its year of construction.
  7. Property’s carpet area and floor space indexing.

Factors affecting property tax calculation

There are many factors that affect this calculation. Besides the method used to calculate the tax, state authorities also consider various aspects of the property. These are as follows.

  • State municipal corporation
  • Type of property
  • Locality
  • Occupancy status
  • Infrastructure offered
  • Floor area
  • Carpet area
  • Number of floors
  • Age factor
  • Base value

Based on these factors, one can assess and pay property tax online as per the rate applicable.

During property tax calculation, the municipal authorities use either of the following methods of computation –

a) CVS or Capital Value System

Property tax calculation under this system is done as a percentage of a land or building’s market value, whereby such value determination is done by the government based on its locality.

b) RVS or Rateable Value System

This method utilises the yearly rental value of a property derived for tax estimation. Such rental value can either be an actual rent collected or a deemed value as per the locality and availability of amenities.

c) UAS or Unit Area Value System

Calculation of property tax under this system is based on the unit price for a property’s built-up area.

Once the amount of tax is assessed, you can proceed to pay property tax online at the concerned website of your municipal corporation.

Additional Read: GHMC Property Tax

Pay Property Tax Online Exemption/Concession

Depending on the state and locality of a property, payment of municipal tax can be subject to the following exemptions or concessions.

Property Types Inviting Exemption –

  1. A land or building occupied for specific purposes like worship, burial, heritage, etc.
  2. A property used for the purpose of charity.
  3. Land or building used for agricultural purposes, excluding property used for dwelling.
  4. Property with its interest vested in a corporation, whereby such corporation is charged the primary tax.
  5. Property owned and self-occupied by a war widow, a winner of gallantry award, etc.

Concessions and Rebates on Property Tax Payment

  1. 30% concession for women, senior citizens as well as the physically challenged.
  2. Rebates –
    1. Ex-servicemen – 30%
    2. Group housing flats – 20% (Applicable up to a specific time in a financial year)

These concessions are applicable only if a property is self-occupied and used for residential purposes. Subject to these concessions, individuals can pay property tax online as per the assessed value for their type of property.

There are several municipal corporations in India that allow to pay property tax online. It is a hassle-free process that involves only some simple steps and minimum documentation. Here is how you can pay your land tax online in India.

  • Visit the official website of your municipal corporation.
  • Navigate to the page where you will be able to file your property tax.
  • Enter your property details, as well as other necessary information on that page as you fill-up the form.
  • Enter any additional information that the website may ask for. This can include ownership details, building type, occupancy details, floor and total area, age, exemption category, etc.
  • Once all these details are submitted, you will be asked to confirm the information and proceed with the payment of your municipal tax. Carefully go through all the given information, and ensure that the details are correct. Once confirmed, click “Submit.”

After you complete the process to pay property tax online, you will be able to download the tax receipt online as well. With the introduction of property tax online payment, keeping track of and filing such taxes have become significantly easier and more time-saving. You will be able to access all the necessary details like e-receipt on property tax, filed tax report, etc. as soon as you complete the process.

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You can also choose offline payment method to pay the due amount. In this case, you have to download the payment challan and pay the tax within the due date as printed on it.

Documents received during municipal tax payment, including tax receipts, should be kept for future use. These receipts will also be required for other purposes, like if you have to file income tax on sale of land. You will also have to present the same when you apply for a secured loan, as during application you will have to present previous tax receipts.

Features like loan against property tax exemption also require submission of previous tax receipts to benefit from the deduction.

Pay Property Tax Online: FAQs

What are the steps to pay property tax online?

The Following are the steps to follow in order to pay property tax online.

  • Log on to the official website of your municipal corporation
  • Locate the section that allows you to file your property tax
  • Fill the form with the necessary basic details
  • Enter property-related information, which includes:
    • Ownership information
    • Property type
    • Occupancy details
    • Age
    • Exemption category
    • Usage type
  • Verify the entered information and proceed to view the payable amount
  • Ensure that all details listed are accurate and crosscheck that the outstanding property tax amount is the same as the amount listed on the property tax bill
  • Select the payment method and pay property tax online
  • Download the tax receipt and print the document for evidence purposes